Conversation 479-004

On April 14, 1971, President Richard M. Nixon, John D. Ehrlichman, Arthur F. Burns, and Alexander P. Butterfield met in the Oval Office of the White House from 12:21 pm to 12:40 pm. The Oval Office taping system captured this recording, which is known as Conversation 479-004 of the White House Tapes.

Conversation No. 479-4

Date: April 14, 1971
Time: 12:21 pm - 12:40 pm
Location: Oval Office

John D. Ehrlichman met with Arthur F. Burns
                                                                    Conv. No. 479-3 (cont.)
     President’s location

     Edward M. (“Ted”) Kennedy
         -Unknown story

Alexander P. Butterfield entered at 12:22 pm


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[Personal Returnable]
[Duration: 1m 3s ]


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The President entered at an unknown time after 12:22 pm

     Economic policy
         -Ehrlichman
         -President’s forthcoming conversation with Burns
         -Paul W. McCracken
         -George P. Shultz
         -John B. Connally
         -Troika
         -Quadriad
         -Burns’ position
         -Future meetings

Butterfield left at 12:26 pm
                                        34

                    NIXON PRESIDENTIAL MATERIALS STAFF

                                Tape Subject Log
                                   (rev. 9/08)



Burns’ schedule
     -Appointment
     -Duration

Germany
    -President’s meeting with Dr. Rainer Barzel
    -Berlin negotiations
          -Kurt Georg Kiesinger                              Conv. No. 479-4 (cont.)
          -Opposition party
    -Willy Brandt
    -German treaty
    -Union of Soviet Socialist Republics [USSR]
    -Possible Berlin agreement
    -Opposition party
    -Brandt
    -US position
    -Federal Republic of Germany [FRG]/Soviet agreement regarding Berlin
          -Possible consequences
               -Nationalism
               -Schizophrenia
               -Henry A. Kissinger’s view
               -Leftists
               -Franz Josef Strauss
               -US policy

Connally
    -Burns’ view
         -Burns’ forthcoming meeting with central bankers
         -Asset to the President
         -Manner
               -Warmth, affection
         -Confidence

Cabinet
     -Loyalty
     -William P. Rogers
     -Melvin R. Laird
     -John A. Volpe
     -President’s conversation with Burns
     -Treasury
     -David M. Kennedy
                                         35

                     NIXON PRESIDENTIAL MATERIALS STAFF

                                 Tape Subject Log
                                    (rev. 9/08)



     -Economic team
          -Burns
          -Connally
     -Connally’s speech to Southern California businessmen
          -San Clemente
          -Republican reaction
          -Unknown man’s reaction
     -George W. Romney                                               Conv. No. 479-4 (cont.)
          -Political ambitions
                -1968 election campaign
     -Connally

Balance of payments
     -President’s conversation with Connally
     -Dollar outflow from Germany
     -Stabilization
     -Connally’s forthcoming report to President
           -[Balance of payments]
     -Paul A. Volcker
     -Consultation between Burns and Volcker
     -Contingency plan
     -Understanding between Connally and Burns
     -Connally’s views
     -Burns’ possible statement to central bankers
           -No benign neglect of balance-of-payments problems
           -Administration’s policy regarding inflation
                 -Firmness
                 -Budget increases
                 -Use of veto
                 -Discussions with labor
                 -Congress
                 -Needed legislation
                 -President’s interest in and awareness of problem
                 -Recommendations
     -Burns’ conversation with Connally

Monetary policy
    -Treasury Department activities
          -Interest rates
    -Connally
    -Higher rates to bankers
    -Flow of dollars to European central banks
                                        36

                      NIXON PRESIDENTIAL MATERIALS STAFF

                                  Tape Subject Log
                                     (rev. 9/08)



     -Contingency funds
     -Tightened monetary policy
     -Outflow of dollars
     -Interest rates
     -Treasury activities
     -Balance of payments
     -Money supply
           -Growth                                         Conv. No. 479-4 (cont.)
           -Rate of growth

Economic indicators
    -Retail sales
    -Interest rates

Interest rates
      -Administration’s objectives
            -Short-term use
            -Bond yields, mortgages
      -Money supply
      -Rise

Economy
    -Steel situation
    -Wage and price freeze
          -Composition of board
                -Public members
                -Economics/politics
          -Cabinet Committee on Economic Policy
                -Authority
                -Price index
          -Wage and price review board
                -Risk
          -Cabinet Committee on Economic Policy
                -President’s possible directive
                -Inflation
                -Authority
                -Connally
                -Maurice H. Stans
                -Labor
                -Commerce
                -Labor
                -Treasury
                                              37

                             NIXON PRESIDENTIAL MATERIALS STAFF

                                        Tape Subject Log
                                           (rev. 9/08)



                      -Department of Housing and Urban Development [HUD]
                      -Transportation
                -Wage and price board
                -Cabinet Committee on Economic Policy
                      -Lumber
                      -Oil
                      -Construction
                      -McCracken                                    Conv. No. 479-4 (cont.)
                -Steel
                      -President’s experience in 1959
                      -I[lorwith] W[ilbur] Abel
                      -Unknown General Motors [GM] labor leader
                -Inflation
                      -Danger of inaction
                      -Appeal to American people
                      -Possible administration response
                            -Cabinet
                            -Congress
                -Steel
                      -Foreign competition
                      -Unions
                      -Older workers
                -Wage and price review board
                      -Composition
                -Cabinet committee

     Burns’ trip to Europe

Ehrlichman and Burns left at 12:40 pm